OPTIMAL REGIONAL GROWTH MODELS: MULTIPLE OBJECTIVES, SINGULAR CONTROLS, AND SUFFICIENCY CONDITIONS

ABSTRACT We develop a generalized Harrod-Domar type of model for optimal regional growth which allows determination of the optimal allocation of regional public investments and which considers multiple growth objectives, as well as both normal and singular fiscal instruments. This general model is shown to include most of the previous optimal regional growth models as special cases. Necessary conditions for some special cases of the general model are analyzed in detail, and decision rules associated with derived optimal regional growth policies are articulated. These special cases verify that singular controls do exist in certain instances, and that they must be considered for the complete specification of optimal regional growth policies; this is significant because singular controls have not been previously analyzed in the literature. We conclude the paper with a discussion of sufficiency conditions for optimal regional growth models which is more general than that given by previous authors.     

Book reviews

Leonard Blussé. Strange company: Chinese settlers, mestizo women, and the Dutch in VOC Batavia . xiii, 302 pp. Dordrecht: Foris Publications, 1986. (Verhandelingen van het Kononklijk Instituut voor Taal‐, Land‐ en Volkenkunde, 122.) Guilders 35.

John S. Guy. Oriental trade ceramics in South‐East Asia, ninth to sixteenth centuries. With a catalogue of Chinese, Vietnamese, and Thai wares in Australian collections, xiv, 161 pp. Singapore, etc: Oxford University Press, 1986. (Oxford in Asia Studies in Ceramics.) £47.50.